He has signed an executive order creating what he calls a Strategic Bitcoin Reserve as well as a Digital Asset Stockpile, which will consist of other types of digital currency.
The funds will be filled with coins forfeited to the federal government as part of criminal or civil procedures.
White House AI and crypto tsar David Sacks likened them to a "digital Fort Knox for the cryptocurrency", drawing reference to the Kentucky military station that maintains a substantial chunk of US gold holdings.
However, some crypto enthusiasts have lambasted the government for not being bolder, while others have raised question marks about the lack of openness over the process.
Sacks has demanded a complete audit of the federal government's existing crypto assets, which he estimated at 200,000 Bitcoin alone. That's worth $17.5bn (£13.6bn) at today's pricing.
Friday, before a special crypto meeting, Sacks addressed reporters at the White House and expressed his disappointment, calling it a "real shame that we did not maximise value for the American taxpayer."
"What we want to do is make sure that with the remaining Bitcoin that we have," he added.
Despite this, Charles Edwards of the Capriole Fund—a digital asset and Bitcoin hedge fund—described Thursday's announcement as "a pig in lipstick" in reaction to Sacks' post on Bloomberg.
"No active buying means this is just a fancy title for Bitcoin holdings that already existed with the government," he said.
"Budget neutral and do not impose incremental costs on United States taxpayers" are the requirements under which the Treasury and Commerce secretaries are to devise plans to increase the government's Bitcoin holdings, according to Trump's executive order.
As a result, according to what Sacks explained to reporters, they are "allowed to buy more if it doesn't add to the deficit or the debt."
Jason Yanowitz, Co-Founder of crypto business Blockworks, agrees with the idea of a Bitcoin reserve but thinks the inclusion of other coins sets a "horrible precedent" and "makes no sense."
"Without a clear framework, we risk arbitrary asset selections, which would distort the markets and drive a loss of public trust," said the economist.
But other experts have taken a more optimistic view.
"This approach makes much more sense than buying the assets," stated Russ Mould, investment director at AJ Bell.
"It would surely be bizarre for the US to sell dollars to buy crypto, when the dollar is the globe's reserve currency and therefore a source of enormous influence."
"Won't price a dime"
At the first crypto summit, the president is scheduled to provide further details during his remarks at the White House.
Sacks assured reporters that a crypto reserve "will not cost taxpayers a dime," but it is still not apparent how this would help the American people.
The possibility of legal challenges to the proposed reserve and the necessity of a congressional act are both left unanswered questions.
According to Sacks, the United States will hold onto any Bitcoins held in the reserve and not sell them. Bitcoin will be the only cryptocurrency held in the reserve; all others will be kept in a separate vault.
The biggest cryptocurrency in the world saw a price drop of almost 5% after he implied the US government wouldn't purchase Bitcoin.
To spread out their government's holdings and protect themselves from financial danger, some nations keep strategic reserves of national assets.
The United States likewise maintains a petroleum reserve. The maple syrup reserve is located in Canada.
Trump announced earlier this week his intention to add five digital currencies to the strategic reserve.
Bitcoin, Ethereum, XRP, Solana, and Cardano were the five coins he mentioned, and their market values all shot up following his revelation.
The US government, according to Mr. Yanowitz, should be careful not to appear to be picking winners.
"Ensuring transparency through independent audits and public reporting is crucial for fostering innovation instead of favouritism," according to him.
Sacks went on to say that the intelligence agencies and all other government entities will be required to examine and "self-report" their bitcoin holdings. So far, no one has been exempted.
"We'll take in that report, and then the Secretary of the Treasury will be setting up accounts within the charging department, one for Bitcoin and one for all other digital assets," according to him.
During his campaign for president, Trump actively courted the cryptocurrency sector. Citing worries about fraud, former US President Joe Biden spearheaded a crackdown on cryptocurrency.
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